Dutch inflation rate remains stable

07/03/2013 09:30

The Dutch inflation rate was 3.0 percent in February, just as in January. Inflation is defined as the increase in the consumer price index (CPI) in a particular month compared to the same month in the previous year.

Price developments of airline tickets had an upward effect on inflation in February, but this was offset by food price developments. On balance, inflation remained stable.

The harmonised consumer price index (HICP) allows comparison between the inflation rates in the various member states of the European Union (EU). The level of inflation in the eurozone is one of the main guidelines for the European Central Bank (ECB) to change or refrain from changing the interest rate. According to the ECB, prices in the eurozone are stable, if the inflation rate is close to 2 percent.

According to the HICP method, the Dutch inflation rate was 3.2 percent in February, just as in January. Eurostat, the European statistical office, calculated an inflation rate of 1.8 percent for the eurozone, i.e. 0.2 percentage points down from January. The huge gap between the rate in the Netherlands and the eurozone rate can partly be attributed to the VAT increase from 19 to 21 percent introduced in the Netherlands on 1 October last year.